Conglomerate Ayala Corp. and food and drinks giant San Miguel Corp. are also in talks for some cooperation between Globe Telecom Inc. and Liberty Telecoms Holdings Inc., their respective telecoms units. A source privy to the negotiations told this writer that such cooperation could include a merger between Globe and Liberty.
The source said San Miguel president and chief operating officer Ramon S. Ang was on top of the negotiations with the Ayala group. Ang cited the compatibility of the telecommunications systems of Globe and Liberty, especially their underground cables.
“Mr. Ang was confident that a merger would enable Globe and Liberty to compete in a more intense price war. The two are inclined to bring prices down to what PLDT could offer,” the source said. He added that San Miguel itself had made preparations to launch its 4G technology in the Philippines to match those rolled out by competitors.
Earlier, Ang said Liberty Telecoms was unfazed by the merger of PLDT and Digitel. “Our capital budget is very big, it will be millions of dollars,” Ang has said.
He said San Miguel’s network would address voice and data capacities which are now congested, resulting in reduced calls and slow data speeds. Liberty Telecoms’ flagship product, wireless broadband wi-Tribe, has expanded the accessibility and availability of broadband Internet and attracted 50,000 subscribers to the service since its launch in January 2010.
San Miguel owns 39.3 percent of Liberty Telecoms while partner Qatar Telecoms holds 32.65 percent.
Phoenix cries foul
Phoenix Petroleum Philippines Inc., one of the most decent and successful companies in the Philippines, was the most surprised to learn that it was facing a P5.1-billion smuggling case from the Bureau of Customs.
Phoenix, like CDO-Foodsphere Inc., has complained that it was never investigated by Customs for any alleged infractions. More surprising was the revelation that Customs already filed the P5-billion complaint with the Justice Department, where a panel of prosecutors has yet to conduct a preliminary investigation to determine whether there was probable cause to file an actual case against Phoenix.
As in the case of CDO-Foodsphere, Phoenix officials found themselves besieged by requests from the media asking them to comment on the P5.1-billion smuggling case. Lawyer Raymond Zorilla, Phoenix Petroleum assistant vice president for external affairs, found himself in the absurd predicament of strongly denying a complaint against his company that he hasn’t even seen.
Customs has found it difficult to meet its monthly collection targets and the grapevine said this could have led the bureau to play it fast and loose with the facts when charging so-called smugglers in a bid to distract the public from its sorry performance.
Oil companies are certainly a convenient target for vilification nowadays because of spiraling fuel prices and a biting inflation that could invite mass protests. Going after them, however, is a cheap way to score political points and a good ploy to distract from the failures of Customs to deliver target revenues.
The allegation against Phoenix Petroleum couldn’t have come at a worse time as it was about to start its largest follow-on public offering of P3 billion just a day before Customs branded it a big-time smuggler.
The company counts among its investors the Social Security System, which last year raised its stake in Phoenix to 9.68 percent from 2.78 percent because of the oil company’s history of profitable growth and positive business prospects.
Prior to the smuggling allegation, Phoenix was having a banner first quarter, making its follow-on offering quite attractive to investors. Its first-quarter revenue grew 122 percent to P6.1 billion from P2.75 billion in 2010.
Customs’ allegation against Phoenix and the questionable timing have affected the marketability and tarnished the image of an otherwise highly successful locally listed enterprise in one broad stroke.
Zorilla lamented the lack of caution and fairness in the filing of the complaint against Phoenix, which he said “damages all the hard and honest work that the company has exerted in building its name.”
